"Prescribing For The Continued Recovery Of The World Economy" - The Central Issue Of The G20 Summit

" Continuing for the world economy recovery Prescriptions have been widely regarded as the central issue of this weekend's G20 summit in Toronto.

In spite of previous times G20 Summit Each time, the voices of Representatives disagreed. However, several countries, including the United States, could always reach a consensus on one issue, that is, they had high hopes for China, and hoped that it would accelerate the process of RMB internationalization.

"The Chinese government has said that the appreciation of the renminbi will be unexpected. The fact is, they did give people a surprise. Franklin Alan, Professor of finance at Walton business school, University of Pennsylvania, USA, said (Franklin Allen).

After the announcement of the central bank's decision to enhance the flexibility of the RMB exchange rate, the mainstream media in the us immediately gave a warm "hug", calling it a lubricant for the Sino US trade dispute. Some media have even exaggerated that China and the US economy will be on the right track in June 21st - only because China has announced this decision before.

At the Congressional Senate Finance Committee hearing held in June 16th, lawmakers in addition to strongly appealed to Obama administration officials to relax their pressure on China, they also said they would continue to push legislation to pressure China to expand its exchange rate reform.

Baucus, chairman of the committee, said at the hearing that China's recent announcement of increasing the flexibility of the RMB exchange rate opened the door for the appreciation of the renminbi, but "the Ministry of commerce should seriously consider China's monetary policy in accordance with the laws of the United States and see whether it has constituted an unfair subsidy" Max Baucus.

Some members asked to identify China. exchange rate The undervalued bill allows the US Department of Commerce to regard the low value of the exchange rate as a subsidy to the product, thereby imposing a countervailing duty on the products concerned.

The bill has now received 120 support from about 30% members.

In a letter sent to G20 leaders in June 16th, Obama said: "the signal released by an elastic exchange rate is necessary for supporting a stronger and more balanced recovery in the global economy." Although no direct reference is made to China, anyone knows that this is clearly aimed at China.

Reuters reported that Obama mentioned the exchange rate issue, suggesting that there may be conflicts between China and the US at the G20 summit in Toronto.

Alfredo Boutino, director of South American economic research at Moodie economic website, said there are signs that the issue of RMB exchange rate may occur during the conference. "Now all sectors of the United States have been actively discussing this topic. During the G20 summit, it is very likely that the United States will put forward this question directly and let everyone discuss it, no matter 37 or twenty-one." He said.

Refusing to speculate that President Obama and President Hu Jintao will have some specific discussions on the currency issue, Burton, deputy White House press secretary, made clear that the major industrial nations are waiting to see how China will implement its monetary adjustment plan in the coming months.

Burton said: "for a broad discussion, they (President Obama and President Hu Jintao) will discuss employment growth, the need for new and established financial regulations, and how we can maintain a sustained economic recovery."

"Monetary policy is certainly part of this discussion," he added.